After 161 days, the S&P 500 finally saw a one-day decline greater than 1% two days ago. That’s a few weeks shy of a half a year, and it can always be a bit unnerving to see weeks of slow but steady gains in one’s portfolio evaporate in a few hours. The question, of course, is Tuesday will turn out to be a minor blip in the persistent uptrend investors have enjoyed since November, or the start of a more substantive corrective phase.
There’s no way to know of course, and really the only thing to do is watch for signs of failed bounces, which in turn produce lower highs on an intermediate basis, and for indication of buyers stepping up along key support levels. Along the way, we also need to be systematically honing our watchlists, looking for bases to form along various moving averages. There’s been a lot of crud under the surface that’s flown higher, and very little hadn’t become extended. This market’s needed a good shaking up for a while, and hopefully, some uncertainty over fiscal policy in the near-term will allow this market to continue digesting recent gains.
For us, our focus remains on our process of working the charts and looking for high-odds set-ups to bring to our community. There’s still some indications that momentum traders are looking for opportunities, but the key, as always, is in the disciplined management of any positions we may enter.
Let’s take a look at some charts.
OraSure Technologies, Inc. (NASDAQ:OSUR)
Apollo Global Management LLC (NYSE:APO)
Pulmatrix Inc (NASDAQ:PULM)
Nektar Therapeutics (NASDAQ:NKTR)
At the time of this post, RevShark had no positions in any of the stocks mentioned.